Get an immediate FREE trial of Orbitax's International Tax Research & Compliance Expert (ITRCE) software for 7 days.

The Tax Hub

Daily Tax Newsletter

Worldwide Tax News

Approved Changes (4)

China

Responsive image

China Expands Tax Concessions for Advanced Technology Service Enterprises

China's State Administration of Taxation has published Circular 79 of 2017 on the expansion of the tax concessions for advanced technology service enterprises. Originally only available for enterprises established in one of 21 model cities and subsequently expanded to 31 cities, the tax concessions are now available for qualifying enterprises nationwide. This includes two main tax concessions:  

  • A reduced corporate tax rate of 15% (standard rate 25%); and
  • An increased deduction cap for employee education expenses equal to 8% of total salaries (standard 2.5%), with any excess allowed to be carried forward.

In order to qualify, an enterprise must seek approval from their local competent authorities and meet the following conditions:

  • Must be incorporated in China (excluding Hong Kong and Macau);
  • Must have adopted advanced technology or have strong R&D capability to engage in one or more advanced technology-based service businesses, including information technology outsourcing (ITO), business process outsourcing (BPO), and knowledge process outsourcing (KPO);
  • At least 50% of the total number of employees of the enterprise must be college educated;
  • The income from engaging in advanced technology-based service businesses must account for more than 50% of total revenue; and
  • The income from engaging in offshore service outsourcing business must account for at least 35% of total revenue.

The nationwide expansion of the tax concessions is effective as of 1 January 2017

El Salvador

Responsive image

El Salvador Ministry of Finance Announces Tax Amnesty Program

El Salvador's Ministry of Finance has announced the entry into force of a tax amnesty program that is available for a period of 90 days beginning 27 October 2017. Under the program, taxpayers with outstanding tax debts prior to the program's entry into force are allowed to regularize their situations without incurring any interest, surcharges, or penalties. The amnesty is available in respect of taxes administered by the General Directorate of Internal Taxes and the General Directorate of Customs.

Click the following link for additional information for taxpayer's that wish to benefit from the amnesty.

Ukraine

Responsive image

Ukraine Clarifies VAT Treatment of Data Processing and Other Information Services Provided by a Non-Resident

The Ukraine State Fiscal Service has recently published an individual tax consultation on the value added tax (VAT) treatment of data processing and other information services provided by a non-resident not registered for VAT. The consultation notes that in accordance with Article 180 of the Tax Code, Ukrainian recipients are responsible for collecting and remitting VAT on services provided by non-residents not registered for VAT if the place of supply is deemed to be within the customs territory of Ukraine. For this purpose, the consultation references Sections 186.2 - 186.4 of Article 186 of the Tax Code, which specifies the types of services deemed to be supplied in Ukraine if supplied to a Ukraine resident. In particular, the consultation references subparagraph c of Section 186.3, which includes, among others, the development, delivery, and testing of software; data processing and consulting; and information and other services in the field of information (IT), including the use of computer systems. Given that the services fall within the scope of services specified in Section 186.3, the recipient must collect and remit the VAT due. Where the recipient is also not registered, a VAT return is made only for the reporting period in which the service was received.

United States

Responsive image

U.S. Social Security Fact Sheet for 2018 Published

The U.S. Social Security Administration has published a fact sheet for the 2018 Social Security rates and cap. For both employers and employees, the rate for the Social Security portion (OASDI) remains 6.20%, and the rate for the Medicare portion remains 1.45%. For the self-employed, the OASDI rate remains 12.4% and the Medicare rate remains 2.9%. The taxable earnings cap for OASDI is increased from USD 127,200 to USD 128,700. No cap applies for Medicare.

Click the following link for the 2018 Social Security fact sheet.

Proposed Changes (1)

New Zealand

Responsive image

New Zealand Reinstates Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Bill

New Zealand Inland Revenue has announced the reinstatement of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Bill

---

On Wednesday 8 November 2017 Parliament reinstated the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Bill. The Finance and Expenditure Committee will now continue its consideration of the Bill. The Bill, introduced on 6 April 2017, contains measures relating to collecting employment and investment income information, reforms to the taxation of employee share schemes and sets the annual tax rates for 2017–18.

The Income-Sharing Tax Credit Bill introduced in August 2010 was not reinstated.

Treaty Changes (7)

Argentina-United States

Responsive image

TIEA between Argentina and the U.S. has Entered into Force

The tax information exchange agreement between Argentina and the U.S. entered into force on 13 November 2017. The agreement, signed 23 December 2016, is the first of its kind between the two countries. It applies for requests made on or after the date of its entry into force concerning information for taxes relating to taxable periods beginning on or after 1 January 2018 or, where there is no taxable period, for all charges to tax arising on or after 1 January 2018.

Brazil-Argentina

Responsive image

Brazil Approves Pending Protocol to Tax Treaty with Argentina

Brazil's Chamber of Deputies has announced that the Committee on Foreign Relations and National Defense has approved for ratification the pending protocol to the 1980 income tax treaty between Argentina. The protocol, signed 21 July 2017 (previous coverage), is the first to amend the treaty. It will enter into force 30 days after the ratification instruments are exchanged and will apply from 1 January of the year following its entry into force.

Canada-Ethiopia

Responsive image

Tax Treaty between Canada and Ethiopia under Negotiation

According to recent reports, negotiations for an income tax treaty between Canada and Ethiopia are underway. Any resulting treaty would be the first of its kind between the two countries, and must be finalized, signed, and ratified before entering into force.

Hong Kong-South Africa

Responsive image

CbC Exchange MoU between Hong Kong and South Africa Signed

According to an update from the South African Revenue Service, a Memorandum of Understanding on the exchange of Country-by-Country (CbC) Reports has been signed with Hong Kong. The MoU provides that CbC reports voluntarily filed by Hong Kong MNE groups in Hong Kong for the 2016 and 2017 fiscal years will be exchanged with South Africa, and given that exchange, South Africa will not require local filing of CbC reports in South Africa by such MNE groups.

Note - As per the Hong Kong Inland Revenue's CbC reporting guidance page (and OECD guidance), the voluntary filing of CbC reports in Hong Kong will only serve to relieve local filing obligations in other jurisdictions with respect to the 2016 reporting fiscal year if the required legal framework is put in place in Hong Kong by 31 December 2017 (generally the first CbC report deadline in other jurisdictions). The passage of the relevant legislative amendment to the Inland Revenue Ordinance is pending.

Panama-OECD

Responsive image

Panama to Sign Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS

According to recent reports, Panama has formally expressed its intent to sign the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). Following Panama's signature of the MLI and deposit of its ratification instrument, the MLI will apply to Panama's covered agreements (notified tax treaties), provided that a particular agreement has also been notified as covered by the respective counterparty, and such counterparty has also deposited its MLI ratification instrument.

Qatar-OECD

Responsive image

Qatar Signs Mutual Assistance Convention

The OECD has announced that on 10 November 2017, Qatar signed the OECD-Council of Europe Convention on Mutual Administrative Assistance in Tax Matters as amended by the 2010 protocol. The Convention must now be ratified by Qatar and the ratification instrument deposited before entering into force in the country.

Click the following link for the signatories to the Mutual Assistance Convention to date.

At the same time, Qatar also signed the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information, which provides for the exchange of information under the OECD Common Reporting Standard (CRS). Qatar intends to begin the first exchanges by September 2018.

Serbia-United States

Responsive image

SSA between Serbia the U.S. under Negotiation

The Serbian Ministry of Labour, Employment, Veteran and Social Affairs has announced that officials from Serbia and the U.S. met 9 November 2017 to discuss bilateral cooperation, including the negotiation of a social security agreement. Any resulting agreement would be the first of its kind between the two countries, and must be finalized, signed, and ratified before entering into force.

Sitemap

Powerful Tax Tools

NEW

FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.

NEW

Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.

NEW

Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.

NEW

Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.

NEW

Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.

NEW

OECD BEPS Project

Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.

NEW

Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.

NEW

Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

NEW

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

NEW

Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.

NEW

Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.

NEW

Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.

NEW

VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.

NEW

NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.

NEW

Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.

NEW

Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Crosss Border Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment Streams.

Get Started with Orbitax Today

With Orbitax, you get reliable and comprehensive solutions for international tax research, compliance and planning. Contact us today to get started with Orbitax.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More